Octo acquires Herndon-based B3 Group
B3 holds $686M Veterans Affairs tech contract
Reston-based Octo Consulting Group, backed by Arlington Capital Partners, has acquired Herndon-based health IT company B3 Group Inc.
Financial terms of the transaction were not disclosed.
B3 modernizes applications using low- or no-code software and platforms such as Microsoft Power Platform. The company also provides data governance, integration and analytics as well as cloud engineering and operations to federal health care clients.
B3’s leadership will remain with the company and expand Octo’s health business.
“We are ecstatic B3 is joining the Octo family,” Octo CEO Mehul Sanghani said in a statement. “Now with even deeper experience across the health space added to our defense, intelligence, national security and civilian customer base, Octo has greatly enhanced its position to serve as the federal government’s complete, end-to-end digital modernization partner.”
B3 has worked with the U.S. Veteran Affairs Department for 13 years. The company holds the $686 million U.S. Department of Veterans Affairs Digital Transformation Center task order. In September 2019, it also won a 15-year, $59.9 million contract to provide the VA with a software-as-a-service enterprise telecommunications expense management integrated solution (eTEMS).
“Joining Octo allows us to enhance our offerings to our customers through a more robust set of solutions and provide greater career opportunities to our employees,” B3 President and CEO Dwight Hunt said in a statement. “As B3 and Octo began to collaborate, we collectively realized that our commitment to improving digital services to the VA and the broader federal health community will turbocharge the solutions we deliver to our nation’s veterans and those that support them.”
B3’s Digital Transformation and Modernization lab will add to Octo’s oLabs, a federal government research and development center housed in a 14,000-square-foot facility.
Fairfax-based software company Sevatec merged with Octo in December 2020, creating a company with 1,100 employees and nearly $300 million in annual revenue. In July 2021, Octo acquired Chantilly-based defense software development company Volant Associates.